The San Joaquin Hills Transportation Corridor Agency today successfully refinanced $1.4 billion of its $2.2 billion in outstanding debt issued to fund construction of the 73 Toll Road. The sale is scheduled to close in early November.

"This is great news for drivers and the communities that surround the 73 Toll Road," said Scott Schoeffel, Chairman of the San Joaquin Hills Transportation Corridor Agency, the joint powers authority responsible for financing the 73 Toll Road. "Refinancing improves the agency's long-term financial health by lowering the annual debt service payments and improving financial flexibility."

The bond issue was well received by the market with $2.5 billion in orders for a bond issue sized at $1.4 billion reflecting the 73 toll road's performance, rating upgrade and confidence in the credit profile.

By taking advantage of the current low interest rates, and selling bonds with a nominal maturity of 2050 compared to the current 2042, the annual debt service growth is reduced from 8.8 to 1.7 percent over the next ten years. The interest rate on the restructured bonds averages 4.74 percent. The previous average was 5.72 percent - a reduction of nearly 100 basis points.

"With this new long-term sustainable debt structure and conservative growth outlook for the 73 Toll Road, the agency will have greater financial flexibility moving forward which may allow the agency to moderate future toll rate increases, withstand economic downturns and potentially pay off the debt ahead of the 2050 final maturity date," said Michael Kraman, Chief Executive Officer for the Transportation Corridor Agencies.

Standard & Poor's and Fitch Ratings have rated the agency's Senior Lien Bonds BBB- and the Junior Lien Bonds BB+. Both ratings are higher than the agency's previous ratings.

The San Joaquin Hills Transportation Corridor Agency (SJHTCA) is a joint powers authority formed by the California legislature in 1986 to plan, finance, construct and operate the 15-mile San Joaquin Hills Transportation Corridor (SR 73). Elected officials from surrounding cities and county supervisorial districts are appointed to serve on each agency's board of directors. Public oversight ensures that the interests of local communities and drivers are served and that TCA continues to meet the region's growing need for congestion-free transportation alternatives.

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